Your SlideShare is downloading. ×
Claims Verified Savings Case Study - Change Healthcare 2014
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Claims Verified Savings Case Study - Change Healthcare 2014

66
views

Published on

Cerner Corporation sought to reduce its annual health plan cost trend by engaging its associates to comparison shop for medical and pharmacy services, and driving them to the company’s on-site clinics …

Cerner Corporation sought to reduce its annual health plan cost trend by engaging its associates to comparison shop for medical and pharmacy services, and driving them to the company’s on-site clinics and pharmacies for high-quality, lower-cost services.

By deploying Change Healthcare’s Ways to Save™ Alerts, Targeted Engagement Alerts and Cost Lookup product offerings, the company achieved its goals and increased engagement by more than 60 percentage points throughout the year. Associates who used the tools and made purchases saved an average of $500 per year, as evidenced by claims data analysis.

Here’s how they did it.

Published in: Health & Medicine

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
66
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. © 2007-2014 Change Healthcare CorporationWPCH00901/24/14 Proactive Engagement Drives Claims-Verified Savings Increased Utilization of On-Site Clinics for Cerner $$ Case Study February 2014 The Challenge Kansas City-based Cerner Corporation is the largest standalone healthcare IT company in the world. With an annual health plan spend of $80  million and 20,000+ lives covered under its full replacement high deductible health plan (HDHP) offering, it was looking for a solution to: • Provide its associates with the tools they need to maximize the value of their HDHP; • Make high-quality healthcare more convenient for those covered under its HDHP; and • Reduce its annual health plan cost trend in the following ways: - Engage associates and their dependents to comparison shop for healthcare and pharmacy services - Drive associates and their dependents to the company’s on-site clinics and pharmacies that offer high-quality care at lower costs. “In everything we do, we strive to empower our associates and their families to obtain their optimal level of health. Our multi-faceted approach includes a consumer-driven health plan, various wellness programs and high-quality, on-site services including clinics, pharmacies, fitness centers and cafes,” said Arielle Bogorad, director of Worldwide Benefits and Wellness at Cerner. “We partnered with Change Healthcare to help maximize the value of these offerings and help our associates to be better consumers of both health and care,” Bogorad said. In particular, Cerner wanted to increase employee engagement, and awareness and utilization of its on-site medical clinics and pharmacies. The Solution Cerner’s implementation of the Change Healthcare Engagement Platform included Proactive Alerts (Ways to Save™ Alerts and Targeted Engagement Alerts) and Cost Lookup product offerings. Ways to Save Alerts, monthly emails or texts that proactively notify users of opportunities to save on their most common and recurring prescription, medical, dental and vision purchases, were utilized to deliver immediate value to users and drive ongoing engagement. Targeted Engagement
  • 2. 2 © 2007-2014 Change Healthcare CorporationWPCH00901/24/14 Alerts were utilized to remind associates of the high-quality, convenient care available at Cerner’s on-site clinics and pharmacies. The alerts are highly targeted educational messages and reminders that support client-specific health and wellness initiatives, such as point-of-care utilization, chronic care management and medication adherence. “We began by working with Change Healthcare to identify the services that provided the greatest opportunities for associate savings. Then, we reached out proactively – every month – around those opportunities… making certain our associates knew they were leaving money on the table and guiding them through the necessary steps to take advantage of savings,” Bogorad said. Cerner associates were also given access  to Cost Lookup, Change Healthcare’s easy-to-use, web- based tool that helps users search for prescriptions, medical, dental and vision services, and see what they would pay at a specific provider – based on their individual health plan, network and location. “Cerner, like many leading employers, has invested in healthcare cost transparency solutions, as well as a variety of care management programs, as part of a multi-pronged strategy to improve employee health while reducing costs. Unfortunately, if employees aren’t informed and engaged, neither party gets the most out of those investments,” said Clayton Nicholas, vice president, strategy and marketing, at Change Healthcare. “We partnered with Cerner to develop a strategic plan for engagement to help their associates get the best care at the best cost,” Nicholas said. The Methodology To assess the value of the Change Healthcare Engagement Platform for Cerner and its associates, Change Healthcare employed a savings methodology that analyzed actual claims data to verify that users not only engaged with the platform, but also changed behaviors and selected high-quality, lower-cost healthcare services. Developed in partnership with a health economist from the Bloomberg School of Public Health at Johns Hopkins, the Claims-Verified Savings methodology and resulting study included the following characteristics: Key Assumptions • A claims-based analysis of the Cerner population’s medical and pharmacy utilization with a measurement period from July 2012 to June 2013 • Savings calculation approach based on the price paid for a service, minus a comparable market price •  Projection of maintenance medication savings for 12 months at 80% of value to reflect optimal adherence at a medication possession ratio of 80% Key Terms • Active User – Logs into the platform for any reason • Engaged User – Responds to a Proactive Alert by logging in and acting upon the alert, or proactively uses Cost Lookup • Purchaser – Acts upon a Ways to Save Alert, Targeted Engagement Alert or Cost Lookup search and purchases a healthcare service, which is then verified in claims data analysis
  • 3. 3 © 2007-2014 Change Healthcare CorporationWPCH00901/24/14 The Results Targeted Engagement Alerts were used to drive increased awareness and utilization of Cerner’s onsite clinics. Of associates who were presented with an on-site pharmacy option in a Targeted Engagement Alert that included multiple pharmacy options, and who purchased the service, 93% utilized the on-site pharmacy. Of those, 31% were first-time visitors to the on-site pharmacy and more than 50% returned to that pharmacy to fill an average of two additional prescriptions. Similarly, 90% of associates who were presented with an on-site clinic option in a Targeted Engagement Alert that included multiple clinic options, and who purchased the service, utilized the on-site clinic. Of those, 22% were first-time visitors to the on-site clinic and 34% returned for at least one additional medical service during the 12-month period. One particular purchaser, who acted on a Targeted Engagement Alert highlighting an opportunity to save by switching from a community pharmacy to Cerner’s on-site pharmacy, experienced Claims-Verified Savings of $257 per refill, or $3,084 savings per year, for a single prescription. Another purchaser, who responded to a Ways to Save Alert on the potential for savings by switching from a brand-name drug to a generic drug at Cerner’s on-site pharmacy, experienced Claims-Verified Savings of $506 per refill, or $6,072 per year, for a single prescription. When using Cost Lookup to search for healthcare services, engaged associates performed an average of 4.3 Cost Lookup searches per year, demonstrating the sustained behavior change Cerner was seeking to accomplish. Of those who followed through with prescription purchases, 79% returned to the same low-cost provider for an additional 3.4 refills on average. Similarly, of those who followed through with medical service purchases, 60% returned to the same high-value provider for an additional 1.5 visits on average. 4.3 PRESCRIPTIONS • Adderall • Lipitor • NuvaRing MEDICAL SERVICES • Colonoscopy • MRI • Birth TOP SEARCH ITEMS SEARCHES ON AVG. PER YEAR +3.4 refills +1.5 office visits When acting on a Cost Lookup search, associates returned for an additional: Cost Lookup Demonstrates Proven Behavior Change for Cerner 93% chose on-site pharmacy when listed as an option 90% chose on-site clinic when listed as an option 31% first-time visits 22% first-time visits +2 refills +1 office visit When acting on a Targeted Engagement Alert, associates returned for an additional: Targeted Engagement Alerts Drive Improved Utilization of On-Site Clinics for Cerner
  • 4. © 2007-2014 Change Healthcare CorporationWPCH00901/24/14 888.920.5234 • engage@changehealthcare.com 216 Centerview Drive, Suite 300 • Brentwood, Tennessee 37027 www.changehealthcare.com 4 www.linkedin.com/company/change-healthcare-inc www.trendsparency.net One purchaser in particular, who comparison- shopped for medical services using Cost Lookup, experienced Claims-Verified Savings of $1,565 on a CT scan of the pelvis or abdomen. Proactive Outreach Drives Engagement and Claims-Verified Savings Change Healthcare’s analysis found that from July 2012 to June 2013, 80% of Cerner’s associates received a Proactive Alert (Ways to Save or Targeted Engagement Alert) and 66% of those alerts were acted upon. The average savings per purchaser for medical services, when prompted by a Proactive Alert, was $138, while the average savings per purchaser for pharmacy services was $378 (a total average savings per purchaser of $516). Specific to Cost Lookup, Change Healthcare found that 55% of active associates logged in and searched using Cost Lookup. The average savings per purchaser for medical services was $141, while the average savings per purchaser for pharmacy services was $312 (a total average savings per purchaser of $453). “In addition to helping Cerner lower its annual plan costs and maximize the value of its on-site clinics, we increased member engagement by over 60 percentage points throughout the year,” said Bogorad. “Change Healthcare’s strategic, proactive approach to engagement continues to deliver real value for both our company and our associates. Working with them has been a great experience.” Proactive Alerts 80% of employees received an alert PRODUCT ENGAGEMENT ACTION Cost Lookup 66% of alerts were acted upon 55% of active employees logged in and searched $ 516/yr $453/yr $ $ AVERAGE SAVINGS PER PURCHASER “Change Healthcare’s strategic, proactive approach to engagement continues to deliver real value for both our company and our associates.” Arielle Bogorad, Cerner Director of Worldwide Benefits and Wellness